Dealing with false positives in transaction monitoring is a huge headache. Traditional, rules-based systems are like a blunt instrument, flagging a ton of legitimate activity and leaving compliance teams sifting through the noise. It’s a waste of time and resources; and it means you could be missing the real threats.
The AI Advantage: Seeing What Rules Can’t
AI changes the game entirely. Instead of just following rigid rules, it analyses the bigger picture. It understands the context and relationships between transactions, spotting patterns that a static system would never see.
Think of it like this: A rules-based system only checks if someone is wearing a specific uniform. Our AI is a detective who understands an entire criminal network.
- Behavioural Analytics learns what “normal” looks like for each customer, so it can instantly flag anything that’s out of the ordinary.
- Network Analysis uncovers hidden connections, revealing sophisticated schemes that rely on multiple accounts to evade detection.
Cutting Through the Noise to Find the Real Signal
This is where AI gets powerful. It doesn’t just reduce false positives; it finds the real threats.
For example, a traditional system might miss a “smurfing” scheme – dozens of small, structured deposits that individually fall below the alert threshold. Our AI, however, sees the pattern and flags the unusual behaviour. It’s the difference between seeing a single drop of water and seeing an entire hidden stream.
The Outcome: Smarter Compliance
The result is a major win for compliance. By cutting false positives by up to 90%, we free up your team to focus on what matters. This isn’t just about saving time; it’s about making your team more effective and giving you the peace of mind that comes with real, definitive intelligence.
The future of financial security isn’t about more rules—it’s about smarter tools. At TESS International, we’re leading the charge.
What’s your biggest challenge with false positives today? Share your thoughts below.
SOURCES:
- Matellio
www.matellio.com
Behavioral Analytics in Banking — The Game-Changer in the Financial Sector – Matellio Inc - AI-Powered AML: Unveiling the Next Generation of Financial Crime Prevention.
- Enhancing Compliance: The Advantages of AI-Based Transaction Monitoring.
- AML in the Age of AI: The Role of Deep Learning in Compliance Innovation.